What made the timing of the fiscal policy response to the COVID-19 recession unusual?
Multiple choice question.
The recognition, administrative, and operational lags were all very short.
The recognition, administrative, and operational lags were all exceptionally long.
The recognition lag was essentially zero, but the administrative and operational lags became very long.
The recognition lag was very long, but the administrative and operational lags were short.
1 answer
The correct answer is:
The recognition lag was essentially zero, but the administrative and operational lags became very long.
This reflects how the COVID-19 pandemic's immediate economic impact was quickly recognized, leading to swift awareness of the need for fiscal policy responses, while the implementation of those responses faced delays due to various administrative and operational challenges.
